International Macroeconomics

Winter Term 2023/2024

MIE: Lecture + tutorial | Master | 3+1 hours | 8 ECTS | A. Scholl | engl. | ZEuS

Time and Location

Tuesday, 10:00 - 11:30 in F427

Thursday, 8:15 - 9:45 in F427

Further information is available on ILIAS.

Course Registration

You have to register for this course on ZEuS. Please note: You cannot self-enrol in ILIAS. Valid ZEuS registrations will be transferred into the corresponding ILIAS course automatically. The ILIAS course will be online in time for the first lecture.

About this Course

What are the characteristics of international business cycles and how can they be explained? What are the economic effects of increasingly integrated financial markets? Are country-specific risks internationally insured? What about international portfolio diversification,  is there a bias towards domestic assets? What are the characteristics of international debt crises? How can foreign creditors enforce debt repayment?
The objective of this course is to address questions like these by studying modern international macroeconomic models and to compare the theoretical properties with the empirical evidence.
 

Outline

  1. Introduction
  2. International Borrowing and Lending under Uncertainty in a Two-Period Framework
  3. International Business Cycles: A Workhorse Model
  4. International Risk Sharing, Financial Markets and International Relative Prices
  5. International Portfolio Diversification and the Home Bias Puzzle
  6. International Debt and Default
  7. Business Cycles and Default Risk

Methodological Part: Solving Nonlinear Dynamic Stochastic Models

Assessment

Students are required to pass a final exam. Conditional on passing the final exam, the final grade is based on home assignment and the final exam. Details on the home assignment will be given in the first lecture.

Syllabus and Course Material

You have access to the course material via ILIAS.